The principal changes in the Bank of Latvia's assets and liabilities on the 31 May 2010 balance sheet as compared to 30 April 2010 and the reasons for these changes.

  • An increase of 95.9 million lats or 2.5% in foreign assets mostly on account of growth in the funds deposited in foreign currencies by the Latvian government and the result on revaluation of foreign currencies and gold.
  • An increase of 7.0 million lats or 16.6% in foreign liabilities mostly on account of a change in the lats equivalent of financial instruments; conversely, a decrease in the amount of funds deposited by international institutions and the European Commission had a reducing effect.
  • A 118.1 million lats or 4.5 times decrease in domestic assets, following a 116.3 million lats fall in loans granted to credit institutions.
  • A drop of 28.0 million lats or 1.0% in domestic liabilities as a result of 18.1 million lats and 9.2 million lats decreases in the respective balances of credit institutions' and the government funds with the Bank of Latvia.
  • On the liabilities side of the balance sheet, the amount of lats in circulation decreased by 8.1 million lats or 1.0% mainly due to the above changes.
  • An increase of 6.9 million lats or 2.6% in the capital and reserves was mainly affected by the result on revaluation of securities and other financial instruments, whereas the result on investment in financial instruments had a reducing effect.

Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia